Cryptocurrency companies are taking an active approach to obtain licenses and integrate into the US banking system. Ripple and Circle have applied for banking licenses while other companies like Kraken are set to launch new financial products.
Cryptocurrency Companies and Licenses
Ripple and Circle have applied for national trust bank charters, while BitGo has done the same. Kraken, on the other hand, is planning to launch debit and credit cards before the end of the month.
Striving for Legitimacy in the Financial System
Companies say that legitimacy is essential for integration with the banking system. Circle believes that the OCC license will help connect cryptocurrency with the US financial system. Ripple's CEO, Brad Garlinghouse, has submitted an application for a master account at the Federal Reserve to hold stablecoin reserves.
New Rules for Stablecoins
In Washington, a new bill known as the Genius Act is under discussion, which would tighten rules for stablecoins. All dollar-pegged stablecoins must be backed by US Treasuries, and their issuers must have appropriate licenses.
Cryptocurrency companies continue to push for legitimacy and integration into the US banking system. With new legislation and changing regulatory environments, they aim to find their place in the financial market.
